A shopkeeper marks his goods 20% above the cost price, but allows 10% discount for cash purchase. What percent profit does he make?

Question: A shopkeeper marks his goods 20% above the cost price, but allows 10% discount for cash purchase. What percent profit does he make?

Solution:
At 20% above,
The market price of goods = 100 + 20 = Tk. 120

At 10% discount,
Selling price = 120 - 10% of 120
= 120 - 12
= Tk. 108

∴ Profit = 108 - 100 = Tk. 8
Profit % = (8/100) × 100
= 8%